At the current price, roughly 53 percent of the rally from the July 28 low of $9,111 to the Aug. 6 high of $12,325 stands erased.

BTC’s recent rally coincided with the devaluation of China’s yuan (CNY). Notably, the People’s Bank of China allowed the yuan to fall beyond 7 per U.S. dollar on Aug. 5.

On the same day, BTC rallied 7 percent and rose to a one-month high of $12,325 on the following day, triggering speculation that BTC is acting as a safe haven asset in China.

That narrative may become entrenched in the market as bitcoin’s drop seen in the last 48 hours is accompanied by a recovery in the yuan. CNY appreciated by 0.26 percent yesterday and is reporting a 0.32 percent gain against the greenback on Wednesday.

However, Peter Schiff, CEO of Euro Pacific Capital Group and a bitcoin skeptic, believes the cryptocurrency did not act as a safe haven in China. Investors who bought bitcoins based on the safe-haven narrative are now cashing out, tracking the recovery in yuan, he says.

Meanwhile, Jacob Canfield, featured trader on CNBC and CoinDesk, has associated bitcoin’s price drop with the delay in fiat withdrawals and deposits for cryptocurrency exchange Coinbase’s U.K. customers. The delay is likely caused by Barclays bank’s decision to end its partnership with Coinbase.